President Donald Trump on Thursday signed an executive order clearing the way for the sale of TikTok’s U.S. assets to a consortium of mostly American investors.
The order represents an important procedural step but stops short of finalizing the agreement, which still requires regulatory approvals in both Washington and Beijing. While U.S. and Chinese officials have indicated alignment on the deal’s framework, several details remain unresolved, including the full list of participating investors.
Trump: Xi ‘Gave Us the Go-Ahead’
Speaking at the signing event, Trump said Chinese President Xi Jinping had approved the transaction following a recent phone call.
“I had a very good talk with President Xi. We talked about TikTok and other things, but he gave us the go-ahead,” Trump said.
However, Beijing has not publicly confirmed Xi’s approval. The last official comment came during recent trade talks in Madrid, when Chinese officials said a “basic framework consensus” had been reached.
Deal Framework and U.S. Law
Thursday’s executive order states that the transaction constitutes a qualified divestiture under a bipartisan law passed last year requiring ByteDance — TikTok’s Chinese parent company — to sell at least 80% of its U.S. assets to non-Chinese investors or face a nationwide ban.
“I have determined that the proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” the order read.
The divestiture will also extend to ByteDance-owned platforms Lemon8 and CapCut.
To provide more time for regulatory clearances, Trump is expected to extend the law’s enforcement pause by another 120 days. TikTok’s U.S. assets are unlikely to be formally transferred until 2026.
U.S. Investors Take the Lead
Under the plan, TikTok’s U.S. operations will be transferred to a new joint venture majority-owned by American investors, including Oracle and potentially Silver Lake, Michael Dell, and Fox Corp. The venture will be overseen by a U.S.-based board of directors, with Oracle responsible for managing TikTok’s algorithm, data security, and privacy oversight.
ByteDance is expected to retain a stake of no more than 20%. The joint venture is projected to be valued at $14 billion, according to Vice President JD Vance, who has led U.S. negotiations.
Beijing, however, has placed TikTok’s algorithm under export controls, raising the possibility that ByteDance may only license the technology to the U.S. venture pending Chinese approval.
Concerns Over Algorithm Control
Despite assurances from Trump and Vance, concerns remain over potential political influence.
“If I could make it 100% MAGA, I would, but it’s not going to work out that way,” Trump joked, before insisting the platform would treat all perspectives fairly.
Vance added:
“We want decisions about content to be made in the interest of the business and users, not politics.”
Analysts warn that Beijing may use TikTok as leverage in broader U.S.-China trade negotiations, viewing the app as a bargaining chip rather than a priority.
Next Steps
ByteDance is expected to sign an initial agreement with U.S. investors this week, while final approvals could align with the APEC Summit in South Korea, where Trump and Xi are set to meet in person for the first time since Trump’s return to office.
